Illinois Exempt Employees laws & compensation compliance analysis

Illinois Exempt Employees: What you need to know

Under Illinois law, employees must be paid 1 1/2 times their regular rate of pay for all hours worked in excess of 40 in a workweek (IL Comp. Stat. Ch. 820 Sec. 105/4a). Because this requirement is identical to that prescribed by the federal Fair Labor Standards Act, the net effect of the state law is to extend overtime protections to employees not covered by federal law (IL Comp. Stat. Ch. 820 Sec. 104(a)). Illinois does not require that overtime be paid for hours worked in excess of 8 per day or on weekends or holidays.
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Illinois exempts anyone employed in a bona fide executive, administrative, or professional capacity from overtime pay requirements. Illinois law adopts the old long test and short test from the federal regulations and the salary threshold of the federal regulations (IL Comp. Stat. Ch. 820 Sec. 105/4a). When choosing whether to apply state or federal law, employers must apply the law that is most beneficial to the employee.
Employees who are paid a salary of at least the federal salary threshold qualify for the executive exemption if they meet both of the following requirements:
1. The employee's primary duty consists of managing the enterprise in which the executive is employed or a customarily recognized department or subdivision of that enterprise; and
2. The employee customarily and regularly directs the work of two or more other employees.
Employees who are paid a salary of at least the federal salary threshold qualify for the administrative exemption if they meet both of the following requirements:
1. The employee's primary duty is office work or work that is not of a manual nature, and the work is directly related to management ...

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Illinois Exempt Employees Resources

Type Title
Checklists Trainees Checklist
Forms Nonexempt to Exempt Letter
Policies Employee Workweek
White Papers Use Caution When Reclassifying Employees
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